Andresen McCarthy Partners

🏠 Holiday Homes & Tax Deductions – ATO Guidance (TR 2026/1)

• A property is treated as a holiday home if it is used (or held for use) by you, your family or friends for holidays or recreation.

• Ownership expenses (interest, rates, body corporate fees, insurance, depreciation and capital works) are only deductible if the property is mainly used to produce rental income.

• If the property is not mainly a rental investment:
– Most ownership costs are not deductible.
– Only direct costs of earning rental income (such as advertising, cleaning after guests and booking fees or commissions) remain deductible.

• Even where the property is mainly income-producing, expenses must still be apportioned for any periods of private use.

• The ATO will consider:
– How the property is actually used.
– The amount of time it earns rental income compared with private use.
– Whether it is genuinely available for rent during peak periods (such as school holidays, public holidays and seasonal demand).

• Simply listing a property online is not enough. It must be genuinely available for rent on commercial terms with the intention of maximising rental income.

• The ATO has advised it will not devote compliance resources to expenses incurred before 1 July 2026.

⚡ EV FBT Exemption Changes – Key Dates

• Eligible electric vehicles (EVs) below the Luxury Car Tax (LCT) threshold (currently $91,661 for fuel-efficient vehicles) continue to receive the 100% FBT exemption until 31 March 2027.

• From 1 April 2027 (proposed):
– EVs costing $75,000 or less retain the 100% FBT exemption
– EVs costing more than $75,000, up to the LCT threshold, receive a 25% FBT discount

• From 1 April 2029 (proposed):
– The 100% FBT exemption ends
– All eligible EVs below the LCT threshold receive a 25% FBT discount

• Existing leases entered into before these changes take effect are not impacted.

• These changes were announced in the 2026–27 Federal Budget and are not yet law.

Thinking about a higher-priced EV? It may be worth locking in your arrangements before 31 March 2027.

🎨 We're proud to be supporting the 2026 Rotary Eltham Art Show as a sponsor.

The Art Show is one of Eltham's premier community events, showcasing incredible local artistic talent while raising funds that support important community initiatives.

If you're looking for something to do in late August, we encourage you to visit the exhibition or join the Gala Opening & Awards Night on Friday 28 August.

We're proud to support an event that celebrates creativity and gives back to our local community.

We look forward to seeing many familiar faces there!

🏠 Self-Managed Super Fund Property Borrowing Rules Have Changed

From 10 August 2026, self-managed super funds (SMSFs) can no longer enter into new limited recourse borrowing arrangements (LRBAs) to purchase residential property, unless the property qualifies as business real property.

But this doesn't mean SMSFs can no longer invest in residential property.

You can still:

• Purchase residential property in your SMSF using cash, without borrowing.
• Consider other ownership and borrowing structures where the property itself is not used as security, subject to the SMSF borrowing rules.
• Continue with an existing LRBA entered into before 10 August 2026, with transitional rules also protecting certain acquisitions and refinancings.

If you're considering property through your SMSF, the structure matters more than ever.

Talk to us before entering into an arrangement so we can help you understand how the new rules may apply.

GAME CHANGER!

There's been plenty of discussion around proposed changes to negative gearing.

What many people don't realise is that the proposal is not aimed at every type of investment.

Under the proposal, negative gearing would still be available for:
• Shares
• Commercial property
• Brand new residential property

The proposed changes are directed at existing residential properties.

Every investment strategy is different, so it's important not to rely on headlines alone.

If you're wondering how the proposed changes could affect your situation, we'd be happy to have a conversation.

Andresen McCarthy Partners | Leading the Way

GAME CHANGER!

The proposed increase to the small business CGT turnover threshold from $2 million to $10 million is expected to commence from 1 July 2027.

Once in effect, more Australian businesses may be eligible for the small business CGT concessions when selling a business.

While these changes aren't in place yet, they're worth understanding now if you're planning for the future.

If you'd like to discuss how the proposed changes could affect your business, we'd be happy to help.

GAME CHANGER!

From 1st July 2027 the small business CGT threshold will jump from $2M to $10M!
More Australian businesses will be able to access the CGT concessions — potentially a CGT-free sale of business.
Want to check if your business qualifies? Call us today.

Andresen McCarthy Partners | Leading the Way

📢 We're looking for our next Graduate Accountant!

Are you ready to kick-start your accounting career with a team that genuinely invests in your development?

At Andresen McCarthy Partners, you'll be supported by experienced accountants and Partners, gain hands-on experience with a wide variety of clients, and build the skills and confidence needed for a successful career in public practice.

If you're looking for a workplace that values learning, teamwork and professional growth, we'd love to hear from you.
📍 Based in Eltham
👉 Apply through SEEK: https://au.seek.com/job/93212250

📧 Have a question about the role? Contact us at [email protected]

Know someone who's about to finish university or has recently graduated? Tag them below or share this post—they might be exactly who we're looking for!

📢 New Financial Year, New Tax Changes

As we begin FY27, there are a number of tax and superannuation changes that may affect individuals, business owners and SMSF members.

Some of the key changes include:
✔️ Personal income tax cuts
✔️ Division 296 superannuation changes for balances over $3 million
✔️ Payday Super requirements for employers
✔️ Proposed small business tax measures currently progressing through Parliament

While not every change will apply to everyone, it's important to understand what may impact your situation and plan accordingly.

If you're unsure how these changes affect you or your business, we're here to help.

📞 Contact the AMCP team to discuss your circumstances.

⚽💚💛 Match day is almost here!

Last Friday we hit pause over lunch, decorated the office in green and gold, and got behind the Aussie team together.

Safe to say productivity took a back seat for 90 minutes... 😉🇦🇺

Who's setting the alarm for tomorrow morning's match?

Come on Australia! 💚💛⚽